The cartel of oil-producing nations (OPEC) once controlled about 80% of the world petroleum market, but OPEC's market share has declined to about half of its former level. This outcome is a good example of how firms may have:

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OPEC had relatively high short-run monopoly power, as they controlled a large share of the world petroleum market. However, their power declined in the long run as other countries and firms developed their own oil production capabilities and as alternative energy sources gained popularity. This is a good example of how a firm's market power can erode over time.

The Cartel of Oil-Producing Nations (OPEC) Once Controlled About 80